Construction Spending Posted Strong Advances in January, AGC

Arlington, VA, March 2, 2016—Construction spending soared in January from a month earlier and all major segments posted hefty year-over-year gains, pushing the total to the highest level since October 2008, according to an analysis by the Associated General Contractors of America.

Association officials said the new spending figures indicate that demand for construction remains robust amid broader economic concerns.

Construction spending in January totaled $1.141 trillion at a seasonally adjusted annual rate, 1.5% higher than the upwardly revised December total and 10.4% higher than in January 2015. Private residential spending was flat for the month but increased 7.7% compared to January 2015. Spending on multifamily residential construction jumped 2.6% for the month and 30% year-over-year, while single-family spending dipped 0.2% from December but rose 6.6% compared to January 2015.

Private nonresidential construction spending increased 1.0% for the month and 11.5% from a year earlier. Nearly every segment increased from 12 months before. The largest private nonresidential segment in January was manufacturing construction, which rose 4.2% for the month and 11.0% year-over-year. The next-largest segment, power (including oil and gas pipelines), gained 2.7% and 10.3%, respectively.

Public construction spending increased 4.5% from a month before and 13.0% from 12 months earlier. The biggest public segment—highway and street construction—leaped 15% for the month and 34% year-over-year, as record warmth in January 2016 allowed projects to proceed that would normally have been deferred until spring in some regions.

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